Turn key providers- stick with just one?

Question

Hello BP community! I’m a new investor interested in purchasing a turn key property since both my husband and I work full time.  I’ve been researching a few different companies and am curious what people think about trying to stay with one provider who may work in multiple markets like Rent to Retirement or local companies like Memphis Invest who have lots of experience in a single market.

Zach Lemaster · Answer

@Katie Panzica

Very nice to meet you!  I personally feel that the more people you network with the more successful you will be in business in general, but especially in RE.  So I would encourage you to continue what you are doing by reaching out to connect with multiple people & multiple companies to see what the right fit is for you.  Having a reputable team you are partnering with to build a long lasting relationship provides the most value in my opinion.  We absolutely try to do that for our clients, and I know @Chris Clothier does the same with his clients.  The reality is that most people over time likely invest with multiple teams to have access to more markets, inventory, business models, etc. to allow you to become a well educated & experienced investor.  All going back to the networking point.  We've had many clients invest with both us, and REI.  They have had very good experiences to share.  The most important thing you can do is find a team you feel comfortable working with, and take action towards getting into that first rental.  It all grows from there!

Soh Tanaka · Answer

Using one turnkey company that works in different markets sounds like a good option, and it might be. While it's a bit more work, I prefer to work with different companies. One is to diversify, and another reason is to learn different perspectives. You don't know what you don't know. No 2 turnkey companies run the business the same way.

That said, you should focus on finding the right turnkey company for you, regardless of how many markets they serve. More likely you'll buy a few properties in one market initially anyway.

Chris Clothier · Answer

Hey Katie!  Welcome to the BP community.  You've asked a great question.  I think the simple answer is - it all comes down to personal preference.  If you are comfortable managing a couple of different relationships and like the offerings in different markets from different companies, then by all means, the best scenario for you may be working with multiple companies.  If you just want to deal with one relationship, then keep it simple and work with the company that makes you the most comfortable.

As for Memphis Invest, the company rebranded to REI Nation a little over a year ago to reflect the fact that they were managing 6500 properties valued at over $1 billion in eight different southeast markets.  Today, we are managing in 10 different markets and still growing, but all under the same management team.  So Memphis Invest, now REI, does sell and manage properties in multiple markets.

I think @zach lemaster can answer detailed questions about Rent to Retirement.  I can say they have good reviews here on BP, so Im sure you would be in capable hands if you went that way.  I hope that helped a bit.  Best of luck as you get started.

Axel Meierhoefer · Answer

@Katie Panzica I can say that both @Chris Clothier and @Zach Lemaster are right. As a TK investor myself, I have found that the criteria you use to determine who to work with are more important than the question about the single company versus multiple company aspect.

Companies have different clauses in their agreements that you want to be familiar with before deciding who to work with and develop the relationship.

The other aspect is the list of criteria that you put on the services you are paying for. In my case, one of the most important criteria is the "All under one roof" criteria. It means that finding a suitable property (I call that the "ugly duckling in a friendly neighborhood"), renovating at a great quality level, putting a fair price on that property so that the appraisal will come in at or above that price and a fair rate for the property management - all by the same company - "under one roof" is probably the most important criteria for me.

After that comes "Performance" and then a few others.

Turn key providers- stick with just one?

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